Health Insurance Types

There are three main types of health insurance plans: Indemnity, HMOs and PPOs. Make sure you know what is covered in each of these plans.

Indemnity

Indemnity offers you the most flexibility when it comes to your health insurance plan. You can go see any doctor you want; you are not restricted to a list of doctors like you are with HMOs and PPOs. You will have to pay for this luxury however, as you will have to pay for your medical care out of pocket and apply for reimbursement with your insurance company. This can get costly because your medical bills may be costly, and you may not have the money on you to pay for it and then wait for a check to come from your health insurance company. If you really value your current health care providers, however, this might be the best option for you.

HMOs

HMOs, or Health Maintenance Organizations, are the most common type of health insurance plans offered today. HMOs provide you with a list of health care providers that are hand selected by the provider. Although your access to health care providers may be restricted, your medical bills will be paid for by the HMO. Since doctors within the HMO will usually recommend you to other doctors within the same provider, you never have to worry about referrals taking you outside of your coverage plan.

PPOs

Preferred Provider Organizations are sort of a cross between HMOs and indemnity plans. PPOs offer a larger list of health care providers so you can choose as well as have the option of being able to go out of network and get your medical bills reimbursed, much like an indemnity plan. If you go out of network, however, your PPO may not cover the entire cost of your medical health. PPOs also have less financial benefits than a HMO would.

Choosing the right health insurance policy is totally up to you. HMOs are the most popular, yet most restricting. Indemnity can get costly but offers you total freedom. PPOs reside somewhere in the middle. What ever you choose make sure you know exactly what you are getting in to.